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Nairaland Forum / Nairaland / General / Business / Dollar Drops Below N400/$ For First Time In Seven Months (49233 Views)
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Re: Dollar Drops Below N400/$ For First Time In Seven Months by tuniski: 5:28pm On Mar 24, 2017 |
obailala:At no time were we refining the crude products we need since 1999 even beyond. In purchasing power parity, this current govt has depreciated and eroded purchasing power like never before in our history. Let us just take it from May 2015 sef, tell me what has significantly changed on the demand and supply sides. Mind u, don't dwell on crude price cos budgeted benchmark have been exceeded.therefore we should be having net savings. Similarly, we are in a saintly govt where corruption is banished. Therefore, let us for the purpose of this discourse admit that 70% of revenue weree stolen under tthe thieving govt of GEJ alone. We still have the exchange rate @197 official and 216 parallel market. Remember, the reserve was used to defend the naira and 30bn$ was still left for buhari. So with just 30% of the level of revenue under GEJ, we should have at least price stability,fx stability, job stability and growing economy. Sadly, we have everything upside down, why? |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by obailala(m): 6:02pm On Mar 24, 2017 |
tuniski:Lol... Quit trying broo... you keep sounding funny the more you try. You say a lot of forex was used to defend the value of the Naira under GEJ (this isn't news). But what I find weird and amusing is how you then expected the Naira value to remain the same after the nation ran out of forex to keep defending the Naira; you put the entire blame on Buhari even when you know he inherited next to nothing in the reserves to keep defending the naira. You then go ahead to talk of oil price being above benchmark?... Bro abeg save us this embarrassment, this is commonsensical. Oil was $100 before and today it is roaming between $50 - $55. It doesnt matter if the budget benchmark is $20, bottom line is that the inflow of forex into the country Nigeria is now roughly less than half of what it was previously. Regarding the exchange rate again, it dropped from N160 to roughly N220 when oil price began to crash under GEJ. It would certainly have been worse but the CBN like you said was still constantly spending huge sums to defend the Naira, hence it didnt get worse than N220. Chart below shows how the reserves dropped rapidly because the CBN/GEJ kept struggling to defend the Naira with funds from the reserves hoping that the oil price drop will reverse soon. Meanwhile oi price during this nosediving period was still averagely above $65/barrel. http://www.tradingeconomics.com/nigeria/foreign-exchange-reserves I don't dwell on empty rhetorics which is the typical mainstay of most Nigerian overnight politico-economic analysts, I prefer showing facts and verifiable figures. Of course since the oil prices refused to pick-up and with reserves dropping so low, it would have been foolish for the CBN to continue with the weekly defence of the Naira and risking a Venezuelan situation, hence the forex restrictions started which eventually tumbled the Naira to record low levels. I don't need to remind you that oil prices kept crashing after Buhari came in till it got to a bottom resistance at $28. So Yes! you can keep blaming Buhari for the major Naira crash because he unfortunately was the president at the time when the INEVITABLE worst (which NOI even warned of) eventually occurred. But then, discerning minds who give a damn about the underlying reasons behind the Naira crash (and who don't rely on half-baked politico-economic beer parlour analysis) know much better. Thanks 3 Likes |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by LordAdam16: 8:48pm On Mar 24, 2017 |
modath: Madam, I no dey give anybody economic lesson again. Make them dey wait for sub N300 exchange rate. E go shock them. Citizens that don't want to be informed, scathe you when you try to inform them, na citizens be that? Let him wait for N250/$1. In fact, I encourage him to tell the CBN to increase their spending. It'll make the retrace quicker and yummy. Egypt floated their currency and received $13b in FDI within 2 months. If Nigeria with a larger economy floats, you can guess how much we will increase FDI within same time period. That FDI would be used to clear virtually all the backlog remaining. I don talk finish, mk my post for no long. -Lord 1 Like 1 Share |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by tuniski: 8:58pm On Mar 24, 2017 |
obailala:Just tell me something; was the budgeted benchmark crude price below or above under the prevailing govt of GEJ and Buhari? Therein lies your answer! Long epistle and quotations only help to confuse those who lack capacity for discern. |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by obailala(m): 9:17pm On Mar 24, 2017 |
tuniski:Budgeted benchmark is $42, oil price today is $52, but the oil price 3 years ago was over $100. Now I'm sure you went through elementary school?.... SO please tell us, $100 and $52, which is bigger?... Does it matter whether $52 is greater than $42?.... Is it greater than $100?... In the answer to these simple logical questions lies your intelligent answer. |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by tuniski: 10:29am On Mar 25, 2017 |
obailala:Good u know it is higher. That means in the economics and finance of the year's activities the price is not a negative variance! I ask again, since u are stuck on oil price what then was the value of naira when oil price was 12$ in 1999? U are being clever by half! |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by obailala(m): 11:12am On Mar 25, 2017 |
tuniski:Lol... bros, now I can conclude that u no sabi book! So after all my explanations on how the demand for the dollar at a particular time is the primary driving force for the value of the Naira, after all my explanations that the demand for the dollar today is over 10 times more than what it was in 1999, you still do not get it do you? You still cannot figure out why the Naira was more valuable in 1999 compared to present day?.... Kindly go back to SS1 and this time, pay more attention in economics class when the topic of demand and supply is taught. I doubt I can help you. |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by olujastro: 11:34am On Mar 25, 2017 |
tuniski:Obailala has floored you hands down. If I were you I would have given up a long time ago. Except you just want to learn codedly from him. |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by tuniski: 2:15pm On Mar 25, 2017 |
olujastro:Clap for yourself! |
Re: Dollar Drops Below N400/$ For First Time In Seven Months by Yinkyyinkie: 9:14am On Jan 03, 2018 |
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